Jiangling Motors reports 20% net increase

Shanghai. March 18 (Gasgoo.com) - Jiangling Motors has announced that its revenues and net profit both rose during 2007. The automaker’s net profit rose 20% to 759.2 million yuan from 628.9 million.

 

The automaker, which primarily specializes in light commercial vehicles (LCVs) and sport utility vehicles (SUVs), reported an increase in sales of 10.5% year-on-year (y/y) from 7.655 billion yuan (US$1.079 billion) to 8.456 billion yuan.

 

During the report period, the automaker sold a total of 95,059 vehicles, including 38,752 JMC light trucks, 23,982 pickup trucks, 4,819 Baowei SUVs and 26,585 Ford Transit commercial vehicles.

 

The company’s auto sales rose 12 percent compared to a year earlier. The company’s sales of Ford Transit vehicles rose 16 percent, light trucks up 18 percent and Bowei up 36 percent compared to one year earlier.

 

The company is 30% owned by Ford. This gives it access to the Transit LCV model, one of the most popular vehicles of this type in the country. Although the company’s sales and profits rose as a result of new model launches last year and the growth of the market, its market share fell by 0.1 percentage point to 1.1%, which shows how competitive the Chinese market currently is, and this is one of the reasons why it is looking to sell vehicles overseas, according to analysis made by Global Insight.